| Step 1 - Know How Much You Can Afford | | | | the right lender will pay off for decades! |
| Before you start looking for a house, you need to | | | | Step 4 - Find a House |
| know how much you can afford in terms of monthly | | | | Using a real estate agent and armed with your |
| home loan payments, property taxes, maintenance | | | | pre-qualification, you'll begin your search for a home. |
| and your general living costs. | | | | Based on what you can afford and your wish list of |
| Ginne Mae, a government housing initiative, offers a | | | | options and amenities you want in a home, you should |
| free calculator to help you figure out how much house | | | | be able to locate what you're looking for. Take the |
| you and your family can actually afford. It's available | | | | time to solicit recommendations from people you know |
| online at - | | | | and respect before selecting an agent. |
| Step 2 - Know Your Rights | | | | Step 5 - Make an Offer |
| Whether you're a low-income home buyer or a | | | | An offer is a tricky minefield of negotiations and real |
| wealthy real estate magnate, you have to know your | | | | estate law. But, with guidance from your trusted real |
| rights. The HUD (Department of Housing and Urban | | | | estate agent, you'll get through it. If you are |
| Development) offers a very informative series of | | | | uncomfortable with the price of a home, feel free to |
| reports dedicated to protecting consumers and | | | | counter-offer what you believe it is truly worth in the |
| prospective home buyers from predatory lending | | | | current real estate market and that neighborhood. |
| practices. You can read them here: | | | | Step 6 - Have the Home Inspected |
| Other resources to look into include the Real Estate | | | | Every offer should be contingent on a full home |
| Settlement Procedures Act (RESPA) and the Fair | | | | inspection. Hire a quality and experienced inspector |
| Housing Act. | | | | who can give you a complete evaluation of the home |
| Remember, you're the customer and you deserve to | | | | and let you know if any major renovations or repairs |
| be treated with respect. As a borrower, you have the | | | | are going to be needed. If the inspector identifies |
| right to shop for financing, request a written Good Faith | | | | expensive needs, that will either afford you room for |
| Estimate of your total costs, ask your mortgage | | | | negotiation on the price or an opportunity to move on |
| broker exactly what they can do for you, ask any | | | | to another home. |
| questions you need to clearly understand the process | | | | Step 7 - Get Insurance |
| and associated expenses, understand your fee | | | | Lenders are going to require you to have insurance on |
| structure and the right to be evaluated for a loan on | | | | the property, at least until they no longer own a large |
| criteria that's free from discrimination. | | | | chunk of it. |
| Step 3 - Find a Loan | | | | Step 8 - Close the Deal |
| When looking for home financing, you want to find the | | | | Last, but not least, is signing and closing the deal. Once |
| best balance among low-rate financing, a loan that fits | | | | you've gotten to this point, you've secured your |
| your lifestyle and plan, and a lender that's going to | | | | financing, the offer has been accepted and you're |
| provide ongoing, quality customer support. Don't be | | | | finally signing the deed to your new home. Shortly |
| stingy on the time investment at this stage, as finding | | | | thereafter, you will be moving in! |